Evergreen Corp. has provided the following data:
-The number of units needed to achieve a target net operating income of $49,500 would be:
A)1,238 units
B)2,750 units
C)3,200 units
D)2,057 units

Question

Evergreen Corp. has provided the following data: 
-The number of units needed to achieve a target net operating income of $49,500 would be:
A)1,238 units 
B)2,750 units 
C)3,200 units 
D)2,057 units

Quizplus · Accepted Answer

Variable expense per unit = $12 per unit + 0.05 F1F1F1S1F1F1F10 $40 per unit + 0.20 F1F1F1S1F1F1F10 $40 per unit
= $12 per unit + $2 per unit + $8 per unit = $22 per unit
Unit CM =Selling price per unit - Variable expense per unit
= $40 per unit - 22 per unit = $18 per unit
Unit sales to attain a target profit = (Target profit + Fixed expenses)F1F1F1S1F1F1F10 Unit CM
= ($49,500 + $5,100 + $3,000)F1F1F1S1F1F1F10 $18 per unit = 3,200 units

Evergreen Corp. Has Provided the Following Data